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Tree Seedlings has the following current-year purchases and sales for its only product. ...

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Accounting

Tree Seedlings has the following current-year purchases and sales for its only product.

Date Activities Units Acquired at Cost Units Sold at Retail
January 1 Beginning inventory 200 units @ $2 = $ 400
January 3 Sales 126 units @ $ 8
February 14 Purchase 318 units @ $3 = $ 954
February 15 Sales 220 units @ $ 8
June 30 Purchase 250 units @ $4 = $ 1,000
November 6 Sales 182 units @ $ 8
November 19 Purchase 84 units @ $5 = $ 420
Totals 852 units $ 2,774 528 units

Required:

The company uses a perpetual inventory system.

  1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
  2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
  3. Compute the gross profit for each method.

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